KCS Supports Small and Medium Exporters in Responding to 'Origin Verification'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Korea Customs Service will implement the ‘Origin Verification Response Support Project’ for small and medium-sized export companies starting next month.

The project aims to help domestic export companies proactively prepare for origin verification by export destination countries, stabilize the use of Free Trade Agreements (FTAs), and enhance export competitiveness.

Origin verification is an administrative procedure in which the customs authorities of the importing country check whether the imported goods, for which preferential tariffs under FTAs have been applied, meet the criteria for determining origin and the required origin documentation. If violations are found, the preferential tariff application is excluded.

The Korea Customs Service plans to enable customs brokers to visit export companies directly to support ▲preparation and storage of origin certification documents ▲creation of origin verification response manuals ▲mock origin verification ▲use of the origin management system (FTA-PASS) and guidance on origin-certified exporter certification.

Last year, a total of 378 companies participated in this project. Among them, 255 companies received new origin-certified exporter certification, and 203 companies introduced the origin management system.

Taking this as an opportunity, the Korea Customs Service explains that participating companies have simplified FTA origin certification procedures or established systematic origin management systems.

This year’s project will be conducted at six customs offices nationwide, including Incheon, Seoul, Busan, Daegu, Gwangju, and Pyeongtaek. Participating companies can receive differential consulting cost support of up to 2 million KRW depending on the consulting evaluation rating and the size of the small and medium-sized enterprise (based on last year’s sales).

In particular, this year, the Korea Customs Service plans to fully cover the consulting costs (up to 2 million KRW) for companies with last year’s sales of 50 billion KRW or less to reduce the financial burden on companies.

Applications for participation in the project can be made through the Korea Customs Service FTA website from the 2nd to the 17th of next month. For more detailed information about the project, refer to the announcement (or notice) posted on the Korea Customs Service website or the FTA website, or attend the project briefing sessions held at each customs office from the 21st to the 24th of this month.

Jeong Gu-cheon, Director of the Free Trade Agreement Enforcement Division at the Korea Customs Service, said, “Recently, requests for origin verification have become non-tariff barriers and caused overseas customs clearance difficulties for companies. The Korea Customs Service will spare no effort to support export companies participating in the project so that they can receive preferential tariff applications through systematic system management by utilizing origin management know-how.”